European JVs to boost Iran’s auto parts industry

Recent deal with French automaker Renault concerning the launch of the joint venture in Iran would play a key role in the development of the Middle Eastern country’s auto parts manufacturers and suppliers, an industry official told Trend.

Industrial Development and Renovation Organization of Iran (IDRO) cemented €660 million deal with French automaker Renault on Monday.

Secretary of the Iranian Automotive Parts Manufacturers Association Mohammad Reza Najafi-Manesh believes that, cooperation between Iranian and European auto parts manufacturers and suppliers would lead to the transfer of the technical know-how to his country.

At the same time, the Iranian side would provide necessary human resources, in the form of the skilled workers, for the car parts manufacturing, he added.

Najafi-Manesh further expressed hope that, cooperation between Iranian and European car parts manufacturers and suppliers would help car makers grab a bigger share of the local and regional markets.

Secretary said that, currently in Iran at least 50 car parts manufacturing joint ventures have been organized in collaboration with international partners. He elaborated, outlining German Robert Bosch and Continental as two of the most outstanding foreign car parts manufacturers and suppliers having established several joint ventures in the Islamic Republic.

Last year Robert Bosch had announced plans for opening its office in Tehran, due to the growing potential of Iran's car market, in view of the international sanctions lift.

There are about 1,200 local auto parts suppliers in Iran. Nonetheless, international carmakers say that their efforts aimed at launching new JVs were slowed by the obligation to produce 40 percent of the required car parts in the Islamic Republic, claiming that Iranians lack the capabilities of high quality spare parts production in the country.